According to the publication, the share of life insurance premiums versus total insurance premiums in Kazakhstan increased in 2018 and amounted to 23.2%. The amount of life insurance premiums, including annuity insurance, was 89.2 billion tenge and increased by 34.76%. The life insurance premiums for the year amounted to 54.7 billion tenge (32.6 billion for 2017).
The reserve of non-occurred losses under life insurance and reinsurance contracts also increased by 65% - from 13.9 billion tenge in 2017 to 23 billion in 2018.
It is noted that the leader in the life insurance premiums has become Halyk-Life, subsidiary of JSC Halyk Bank of Kazakhstan on Life Insurance, increasing the premium by 55% from 16 billion to 24.8 billion tenge.
JSC LIC NOMAD LIFE has become a leader in the annuity insurance premiums showing an increase of 53%, from 15 billion to 27 billion tenge.
The analysts note a decrease in life insurance payments by 25%, from 2 billion to 1.5 billion. However, three companies as Halyk-Life, subsidiary of JSC Halyk Bank of Kazakhstan on Life Insurance, JSC LIC State Annuity Company and JSC LIC Standard Life show an increase in payments.
We would like to add that this Forbes Kazakhstan rating is based on nine indicators, which are absolute and relative indicators of the financial condition of insurance companies, namely:
• Performance indicators: ROE (1) and combined loss ratio (2);
• Absolute indicators, such as assets (3), equity (4), net earned insurance premiums (5), net insurance payments (6) and net profit (7);
• Growth indicators: growth in net earned insurance premiums compared to the previous year (8);
• Actuarial reserve coverage ratio (9).
The main period under review is from January 1 to December 31, 2018.
An individual ranking from 1 to 25 was calculated for each of nine indicators. Next, a synthetic score for each company was calculated as the sum of indicators of nine rankings. The final rating was compiled by increasing this score. All data was obtained from the financial statements of companies or statistics of the NBK.
As the publication notes, this rating is a purely journalistic and expert assessment study and cannot be used as official information or a document.
The rating of Kazakhstan life insurance companies by Forbes Kazakhstan with assistance of KPMG in Kazakhstan and Central Asia is as follows:
1. JSC LIC Nomad Life
A.M. Best rating is B-/Stable (12/20/2018)
The Board Chairman is Kairat Chegebayev
The main portfolio proportion are life insurance, retirement annuity
The company has been the first in net profit for two years in the row, earning 7.4 billion tenge in 2018 (40% more than the results of 2017), it is leading in terms of payments with 5.1 billion tenge, with a share of 33.9% in the total payments of LICs.
The ultimate beneficiary is Almas Mynbayev (No. 47 of the Forbes Kazakhstan wealthiest businessmen rating).
2. JSC Halyk Life, subsidiary of Halyk Bank of Kazakhstan on Life Insurance
A.M. Best rating is B+/Stable (03/01/2019)
The Board Chairman is Oksana Radchenko
The main portfolio proportion is life insurance, CAI (compulsory insurance of the employee against accidents)
In November 2018, the company completed the reorganization in the form of a merger of JSC Kazkommerts-Life. The deal allowed JSC Halyk-Life to become the largest among LICs in assets (145.2 billion tenge), reserves (112 billion tenge) and equity (22.5 billion tenge). The company rose from fourth to second place in terms of net profit (4 billion tenge).
3. JSC LIC European Insurance Company
The Board Chairman is Dmitry Nadirov
The main portfolio proportion is life Insurance
At the end of 2018, the company has collected 15.65 billion tenge of premiums, which is 12% more than in 2017. It is the only LIC with a single-asset portfolio: life insurance holds 87% in its premiums. Another large share falls on the premiums on the accident and health insurance, which amount to 1.3 billion tenge.
The only shareholder is a citizen of the Czech Republic, Richard Benishek.
4. JSC LIC State Annuity Company
The Board Chairman is Galym Amerkhodzhayev
The main portfolio proportion is accident and health insurance, retirement annuity
The company ranks third in the employer annuity segment. It showed an increase in assets by 5.5% and liabilities - by 6% in 2018. The Government of the Republic of Kazakhstan represented by the Ministry of Labor and Social Protection, the sole shareholder, decided to transfer 346.1 million tenge of net profit to the state budget. In December 2018, SAC was excluded from the list of privatized objects.
5. JSC LIC Standard Life
Fitch Ratings: B/Stable (07.12.2018)
The Board Chairman is Yerzhan Konurbayev
The main portfolio proportion is life insurance
Fees of the life insurance company in 2018 increased to 5.3 billion tenge. A major participant changed; Dauren Kumpeisov dropped from the shareholders, and Maksat Alzhanov accumulated 20.19% of the shares. According to the results of the year 2018, the company's profit fell by 21.5%, to 572 million tenge. Nevertheless, 70% of net income was directed to dividends.
6. JSC LIC Freedom Finance Life (former JSC LIC Asia Life)
Fitch Ratings: B-/Stable (28.02.2019)
The Board Chairman is Azamat Yerdessov
The main portfolio proportion are CAI, life insurance
In September 2018, the company changed its name from JSC LIC Asia Life due to change of shareholders. Timur Turlov became a major participant. The LIC portfolio also changed. By the end of 2018, the company had three large portfolios: CAI - 45%, life insurance - 30% and accident and health insurance - 24% instead of a retirement annuity and CAI.
Source: https://forbes.kz/leader/reyting_strahovyih_kompaniy_2019_1565778573/
Link to the rating of Kazakhstani LICs published on December 11, 2018:
https://forbes.kz/ranking/strahovyie_kompanii_po_strahovaniyu_jizni_-_2018
